Moderna inc. reduced its annual sales forecast to COVID-19[feminine] vaccine on Thursday, citing near-term supply constraints that would push some deliveries into next year, sending its shares tumbling nearly 11% before the bell.
It now expects vaccine sales of $18 billion to $19 billion this year, down from a previous forecast of $21 billion due to delays at its contract manufacturing partner.
Demand for original coronavirus vaccines has also been hit in international markets as countries complete their primary vaccination campaigns, while the rollout of updated boosters suitable for Omicron has been slow in the United States and Europe.
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In September, some U.S. pharmacies reported that government supply of Moderna’s updated vaccine remained limited, causing appointments for the product to vary across the country.
Moderna’s weak forecast comes just two days after rival Pfizer Inc’s quarterly sales of its COVID-19 vaccine beat market expectations and the drugmaker raised its full-year sales forecast from its vaccines.
Jefferies analyst Michael Yee said Wall Street’s expectations for the shot were too high and Moderna’s predictions were “overblown.”
Its third-quarter sales of $3.36 billion beat Wall Street estimates of $3.53 billion. The company said the drop in sales was due to the timing of the market approval of bivalent booster shots and the ramp-up of related manufacturing.
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It also reported a $333 million charge on vaccines that had expired or were about to expire before being used and $209 million in expenses for unused manufacturing capacity.
Moderna expects US$4.5-5.5 billion in revenue from signed contracts for its COVID-19 shots in 2023.
Shares of the biotech company were trading at US$131.83.